Yesterday was 'go time' for Chrysler and General Motors- two of the 'Big Three' automakers who have asked Uncle Sam for bailout funds to ensure their continued operation.
Chrysler announced details of their plan, which must be finalized by the March 31st deadline in order to receive government assistance. In contrast to GM's plan to slash brands and products, Chrysler's intentions are to proceed with a robust series of product launches including electric powered cars to help meet fuel economy standards.
Additionally, a proposed partnership with Fiat would help Chrysler to enhance their restructuring efforts too, as it would give the American carmaker access to smaller, more fuel-efficient vehicles and engines.
According to a press release, Chrysler plans to start paying back any financial assistance by 2012 with interest, though they've also added $2 billion to the original $7 billion request on account of severely worsening conditions.
Other parts of Chrysler's plans, in addition to those already carried out, include a 3,000 person workforce reduction and discontinuation of 3 vehicle models. Chrysler also says that they're working with the UAW to devise a workforce cost structure that would comply with the requirements of the loan.
Chrysler LLC Chairman and CEO Robert Nardelli commented on his company's submission to the US Treasury Department. "We believe that Chrysler LLC will be viable based on the updated assumptions contained in this submission, and that an orderly restructuring outside of bankruptcy, together with the completion of our standalone viability plan, enhanced by a strategic alliance with Fiat, is the best option for Chrysler employees, our unions, dealers, suppliers and customers".
photo:Chrysler
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| Chrysler LLC Chairman and CEO Robert Nardelli |
Chrysler announced details of their plan, which must be finalized by the March 31st deadline in order to receive government assistance. In contrast to GM's plan to slash brands and products, Chrysler's intentions are to proceed with a robust series of product launches including electric powered cars to help meet fuel economy standards.
Additionally, a proposed partnership with Fiat would help Chrysler to enhance their restructuring efforts too, as it would give the American carmaker access to smaller, more fuel-efficient vehicles and engines.
According to a press release, Chrysler plans to start paying back any financial assistance by 2012 with interest, though they've also added $2 billion to the original $7 billion request on account of severely worsening conditions.
Other parts of Chrysler's plans, in addition to those already carried out, include a 3,000 person workforce reduction and discontinuation of 3 vehicle models. Chrysler also says that they're working with the UAW to devise a workforce cost structure that would comply with the requirements of the loan.
Chrysler LLC Chairman and CEO Robert Nardelli commented on his company's submission to the US Treasury Department. "We believe that Chrysler LLC will be viable based on the updated assumptions contained in this submission, and that an orderly restructuring outside of bankruptcy, together with the completion of our standalone viability plan, enhanced by a strategic alliance with Fiat, is the best option for Chrysler employees, our unions, dealers, suppliers and customers".
photo:Chrysler